In each of the past three quarters, electronics retailer Circuit City
What analysts say:
- Buy, sell, or waffle? Twenty-five analysts follow Circuit City. Five give it buy ratings, 18 more say hold, but only two counsel selling the shares.
- Revenues. On average, they're looking for sales to slide 2% to $2.78 billion.
- Earnings. It doesn't look too promising for the company to post profits. Wall Street's looking for a loss of $0.12 per share.
What management says:
You can't make this stuff up. The most recent 8-K filing at Circuit City describes the appointment of Ceridian
In other management news, Circuit City announced the appointment of a new CFO, effective July 30. An alumnus of two of Circuit City's fiercest foes, Best Buy
What management does:
Will Besanko stick around long enough to reverse the year-long slide in gross, operating, and net margins at Circuit City? Investors can hope.
2/06 |
5/06 |
8/06 |
11/06 |
2/06 |
5/06 |
|
---|---|---|---|---|---|---|
Gross |
24.4% |
24.3% |
24.3% |
23.8% |
23.6% |
23.2% |
Operating |
2.1% |
2.3% |
2.3% |
1.7% |
1.2% |
0.4% |
Net |
1.2% |
1.3% |
1.4% |
1.1% |
(0.1%) |
(0.6%) |
One Fool says:
On a rolling average basis, Circuit City's sales have only inched up 3.7% over the past year, gross profits have fallen 1.1%, and operating profits have fallen 80.2% as SG&A costs have been on the rise. Gee, you mean firing all the most experienced salespeople didn't boost sales and destroying employee morale didn't cut payroll costs? Who woulda thunkit?
Meanwhile, next door, Motley Fool Stock Advisor andMotley Fool Inside Value pick Best Buy just finished reporting a 15% rise in revenue during its second quarter. Yeah, I actually do think it's about time Circuit City imported a Best Buy alum. Now let's see if they can find a way to get him to stick around long enough to do some good.
For the Fool skinny on Circuit City's last quarter news and what it's been saying since, read: